Boston Beer Company Inc (SAM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.44% | 41.24% | 38.77% | 46.90% | 49.14% |
| Operating profit margin | 4.98% | 4.34% | 0.39% | 14.06% | 11.59% |
| Pretax margin | 5.46% | 4.37% | 0.34% | 14.07% | 11.55% |
| Net profit margin | 3.80% | 3.22% | 0.71% | 11.05% | 8.80% |
The profitability ratios of Boston Beer Company Inc have fluctuated over the past five years.
Starting with the gross profit margin, which measures the company's ability to generate profits from its core business activities, we observe a general downward trend from 49.14% in 2019 to 42.44% in 2023. This decline suggests that the company may be experiencing challenges in controlling its direct production costs.
Moving on to the operating profit margin, which indicates how much profit the company is generating from its operations after accounting for operating expenses, we see fluctuations over the period. Although there was a significant decrease in 2021 to 0.39%, the ratio has shown some improvement in recent years, reaching 4.98% in 2023. This improvement is a positive sign that the company is becoming more efficient in managing its operating costs.
Similarly, the pretax margin and net profit margin ratios have also experienced fluctuations. The pretax margin increased to 5.46% in 2023 from 0.34% in 2021, indicating that the company is generating more profits before accounting for taxes. The net profit margin, which measures the company's bottom line profitability after all expenses have been deducted, has also shown improvement, reaching 3.80% in 2023 compared to 0.71% in 2021.
Overall, while Boston Beer Company Inc has faced challenges in maintaining consistent profitability ratios, there are recent signs of improvement in its operational efficiency and bottom line profitability. It will be important for the company to continue monitoring and optimizing its cost structures to sustain this positive trend in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.99% | 6.39% | 0.58% | 17.71% | 13.75% |
| Return on assets (ROA) | 5.33% | 4.73% | 1.05% | 13.92% | 10.44% |
| Return on total capital | 9.28% | 8.50% | 0.81% | 25.52% | 19.70% |
| Return on equity (ROE) | 7.07% | 6.29% | 1.48% | 20.06% | 14.96% |
Boston Beer Company Inc has shown a consistent improvement in its profitability ratios over the years. The operating return on assets (Operating ROA) has increased from 0.58% in 2021 to 6.99% in 2023, indicating the company's ability to generate operating income relative to its total assets has significantly improved.
Similarly, the return on assets (ROA) has also shown a positive trend, increasing from 1.05% in 2021 to 5.33% in 2023. This indicates the company's efficiency in generating profits from its total assets has been on an upward trajectory.
The return on total capital has also shown consistent growth, increasing from 0.81% in 2021 to 9.28% in 2023. This ratio reflects the company's ability to generate returns on the total capital employed in its operations, including debt and equity.
Moreover, the return on equity (ROE) has displayed a positive trend, indicating an improvement in the company's ability to generate profits for its shareholders. The ROE has increased from 1.48% in 2021 to 7.07% in 2023.
Overall, the profitability ratios of Boston Beer Company Inc suggest that the company has been successful in improving its operational efficiency and generating satisfactory returns for its investors over the past few years.